MATIC may lose $1 support and enter downtrend
CriptoFácil – Since the beginning of the year, was one of the cryptocurrencies that gained the most value in the market. Its price rose more than 70% and reached US$ 1.53. However, the cryptocurrency has entered a strong downtrend that has resulted in 20% losses over the past few days.
This reversal pattern was so intense that it formed a V shape, causing MATIC to drop below the crucial support of $1.3. Furthermore, the movement came with an increase in volume, which indicates strength in this devaluation.
Now traders believe this combination should accelerate selling pressure and encourage MATIC to fall further. More precisely, traders are betting on a further 18% drop in MATIC and a break of the $1 support.
from green to red
The MATIC price has witnessed a parabolic recovery since January 1st, following the rest of the market trend. In mid-February, the cryptocurrency reached a level of US$ 1.57, the highest appreciation in ten months.
Furthermore, the coin price has formed a local peak at the $1.53 mark, preparing for further appreciation. However, the scenario has changed, and since the middle of the month MATIC reversed downwards, showing a price correction.
Initially, this correction looked like a short move, but with the growing pessimism in the cryptocurrency market, this phase has extended longer than expected. As a result, MATIC recently broke a crucial support of the $1.30 mark. In a fortnight, the cryptocurrency recorded a loss of 20.2% and is now trading at the $1.22 mark.
tops and bottoms
Thus, with the sale supported by the increase in volumes, the price of MATIC should fall further. According to the analysis, there should be a 4% drop, which will make the cryptocurrency test the support in the region of $1.18.
Thus, the support level is strong enough to stop the ongoing correction and spur buyers to refuel the bullish momentum. But in case the price dips below this level, MATIC can target the $1.07 level.
However, in the event of further declines, the 0.618 FIB level at $1.05 could act as a second line of defense. If this defense fails, however, the price will have no active support until the $0.50 region – 60% below the current price.
In case of a bullish reversal at any of the mentioned supports, MATIC buyers should wait for a break above $1.3 to get confirmation that the correction phase is over.
By CriptoFacil